Quote:
Originally Posted by Grandpa Redneck
I know we have a few solar gurus and some tax pros on this forum, so I figured this was the place to hopefully get straight answers.
Last summer grandma and I put a small solar power set up on our off grid cabin. 1680 watts, and we spent about $4500. I know there is a solar tax rebate, but I was told it only applies to your full time residence, and only if it is a grid tied system, and professionally installed. Ours is off grid, and only a weekend get away, and we did it ourselves. I was also have been told it would apply to our set up.
My questions are.
1) Which is correct?
2) is it worth it to itemize our taxes to claim the rebate if our little off grid getaway is eligible? we always have filed EZ since we don't have enough itemized deductions to add up.
3) If eligible can we claim what we spent last year on this coming years taxes? (already filed and received our return for 2020)
Thanks in advance for the help
Grandpa Redneck
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1) As stated above you are eligible for the credit but the form needs to be completed for the tax year the installation was paid for, in your case last year 2020.
2) The credit has nothing to do with itemizing it is a separate form that is a blower the line credit that can be used even if you take the standard deduction. In your case since you filed 2020 you’d have to file an amended return
3) It should also be important to note that if the credit exceeds your tax for that year the excess credit carries over to the following tax year. The solar credit is what’s called a non-refundable tax credit which means again that the excess credit would carry over to next year and not be refunded in cash as an addition to your refund
4) The credit allowed is 30% of the funds spent on the solar system installed
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